Indian Fractional Ownership PropTech hBits Receives Approval for Alternative Investment Fund with $60.8M Capacity

Indian Fractional Ownership PropTech hBits has received approval to set up its own Alternative Investment Fund (AIF) with substantial Assets Under Management (AUM) up to R 500 Crore ($60.8M).

After receiving regulatory approval from the Securities and Exchange Board of India, hBits' new fund will allow investors to pump more than $60M into India's commercial real estate market via the proptech—with anticipated returns of between 18%-20% for participating investors according to a company statement.

Meanwhile, hBits has also launched a feeder fund (GIFT) for foreign investors.

Shiv Parekh, founder at hBits, said:

"Securing SEBI's regulatory approval for our CAT II Alternative Investment Fund, boasting an impressive Rs 500 crore AUM, is a momentous accomplishment for hBits.

"This milestone not only showcases the unwavering trust bestowed upon our platform by investors and regulatory authorities but also signifies our readiness to seize the boundless potential of the commercial real estate market. We are passionately committed to democratising commercial real estate and creating a thriving global market."

Mayank Jain, CIO at hBits, said:

"With our SEBI-approved CAT II AIF in place and the proposed of the Global Investors Feeder Trust (GIFT) based feeder vehicle, hBits is excited to offer investment opportunities with superior risk adjusted returns to our investors. We are targeting exceptional Grade-A commercial real estate developments across India."

hBits was founded in 2019 with the mission of democratising access to commercial real estate in India and already manages more than $360M of assets.

The firm raised an angel round worth $2.4M in September 2022.

Founder and CEO Shiv Parekh is an alumnus of Harvard and Stanford Universities and was named in Forbes Asia 30 Under 30 list in 2022.